THE SLUGGISH PACE of investments by Corporate India has been possibly the biggest policy conundrum leading up to the first Budget of the NDA government’s third term under Prime Minister Narendra Modi. However, the Union Budget speech for 2024-25 is silent on why private sector investments haven’t quite commenced despite the corporate tax breaks in 2019, the significant ramping up of government’s capex over the last few years, the improving profitability of India Inc, and healthy bank balance sheets. On Monday, the Economic Survey, authored by Chief Economic Advisor V…
Tag: divestment
RBI’s bumper payout to limit big ticket divestment; govt to maintain Rs 50k cr target: Report
The record Rs 2.1 lakh crore dividend payout by the Reserve Bank of India will limit the need for big-ticket divestment, a domestic rating agency said on Thursday. Care Ratings said the new government will retain the interim budget’s Rs 50,000 crore target on receipts from divestments. “With a bumper dividend from the RBI, the central government’s fiscal position remains comfortable, which may limit the urgency to push ahead with big-ticket divestments,” it said. If there is a shortfall in the resource accretion, the government will prefer asset monetisation, it…